GOVT'S RESPONSE TIMELY IN REDUCING PEOPLE`S BURDEN, SAYS ANALYST

PENANG, Nov 12 (Bernama) -- The government's response to the global
financial crisis is timely in reducing the burden on the people, according to an
economic analyst at a northern local university, Universiti Sains Malaysia
(USM).

Professor Amir Baharuddin said the economy stimulus package of RM7 billion
(about US$2 billion) announced recently by Deputy Prime Minister Najib Razak,
who is also the Finance Minister, would help many poor Malaysians and also
reinforce the private sector's confidence.

He said the stimulus package showed that the government was concerned with
the well-being of the country's economy and this boosted confidence among the
private sector.

"I believe the Malaysian economy will not fall into recession because our
economic fundamentals are still strong and the government has taken early
measures to cushion the impact of the world economic meltdown," Amir said when
contacted by Bernama.

He cited the example of the RM1.2 billion allocation to build 25,000 units
of low and medium-cost houses which was the government's initiative to ensure
that more Malaysians, especially those in the lower income group, could own a
house.

"Normally, during an economic slowdown, not many in the private sector
would dare to venture into building low-cost houses as it would not be
profitable to them," Amir said.

"The government has taken the initiative to provide more opportunities for
the low income group to have their own houses," he said.

Amir also praised the government's move to lower the petrol price according
to the market price to ease the burden on the people, especially those with
vehicles.

He said this was also supported by the RM500 million allocation to improve
the country's public transport system.

"However, this might not happen overnight and it takes good planning to
transform the public transport system into a better one," he added.
-- BERNAMA